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land zoned RMD

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1

some of my streets is now zoned RMD and there is a lot of development starting to happen I keep getting offers to buy my property dropped in my letter box, The latest one is a reputable land agent saying property in my area is fetching approx $1080 a sq metre. If so that basically doubles what my property is worth and my house will need a lot done to it over the next few years what I am wondering is the price they are saying a realistic expectation?

violetlris - 2021-06-05 10:55:00
2

Get the agent around to confirm, but remember you have find somewhere else to live and find the moving costs

toyboy3 - 2021-06-05 11:08:00
3
toyboy3 wrote:

Get the agent around to confirm, but remember you have find somewhere else to live and find the moving costs

^^this. Even if it is, would you be able to afford a good house in another area?

sparkychap - 2021-06-05 11:12:00
4
sparkychap wrote:

^^this. Even if it is, would you be able to afford a good house in another area?

That is definitely the question just looking at house prices is scary in chch at the moment but looking just out of the city seems more affordable.

violetlris - 2021-06-05 11:58:00
5
violetlris wrote:

That is definitely the question just looking at house prices is scary in chch at the moment but looking just out of the city seems more affordable.

if it works then it’s a great opportunity - esp if your house is going to need expenditure in the next few years. Do you want the added hassle that higher density housing brings - eg traffic and noise.

If you wanted some certainty over value, you could employ a registered valuer, but ensure they are clear on the situation and what the agent is offering.

The agent should also be able to give you recent comparable sales to developers. If you are confident you could also approach local developers directly.

sparkychap - 2021-06-05 12:08:00
6

Hi,
Can confirm that we have sold RMD land in Chch for in that price range.
Depending on location, shape, and size I have seen from $700-1300 sqm achieved this year. There was a sale this week at $1900 sqm.

paysanne - 2021-06-05 13:01:00
7
paysanne wrote:

Hi,
Can confirm that we have sold RMD land in Chch for in that price range.
Depending on location, shape, and size I have seen from $700-1300 sqm achieved this year. There was a sale this week at $1900 sqm.

Thank you we are in the linwood area and with in the next year a developer is building 41 units just down from us and that will bring in a huge number of people and cars im leaning to looking into this further.

violetlris - 2021-06-05 13:50:00
8
violetlris wrote:

Thank you we are in the linwood area and with in the next year a developer is building 41 units just down from us and that will bring in a huge number of people and cars im leaning to looking into this further.

Tell them you'll quit for nothing under $1600.00 a square after their commission and leave it in their court.

Edited by mrcat1 at 6:20 pm, Sat 5 Jun

mrcat1 - 2021-06-05 18:19:00
9

I have done my budget at $1600 a square buying 10,000 squares for 16 mill. I will build 41 units at just under $400,000 costs each total 16 mill. I will sell the units for 1 mill each. I have 9 mill less interest at 4 mill over 2.5 years at about 4% on 41 mill leaving me 5 mill out of 41 about 8% return on investment. Does that look right.
Would I be better to just buy 41 rentals at 1 mill each?
Can I sell the units for 2 million?

ash4561 - 2021-06-05 18:53:00
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